Question

Your grandfather placed $5,000 in a trust fund for you. In 12 years, the fund will be

worth $10,000. What is the rate of return on the trust fund?

Answer 1

Explanation:

fv/pv=(1 + r)^n

10000/5000=(1 + r%)^12

2=(1 + r%)^12

r=5.95

Answer 2

fv/pv=(1+r)^n

10,000/5000=(1+r%)^12

2=(1+r%)^12

r= 5.95